Owifix Question 1:The following is the income statement of Giza Co. for the period ended December 31, 2011:Required:DescriptionSales RevenueVariable costManagerial Accounting - Assignment 2Contribution marginAvoidable fixed cost- Unavoidable fixed costNet income (loss)Product X60,00040000?010,000?Product Y90,000?20,0008,00015,000?Product Z50,00034000?20,0005000?1. Complete the income statement2. Do you advise the company to delete any product? Justify.3. Prepare the income statement in case of deleting a product.4. If the company can increase the sales of all products by 20%, do you still advice the company to delete any product? Justify.Total

Delete any product or discontinue a product or operation that have been terminated and are no longer…

Answered: Required: 1. Complete the income…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
Leatned Corporation has proviaed insa costper COst pel period direc marerials: direct LaOor: variable manufact overnead:S1.65 Fixed manutack oveihead: Saes commisions: variable administiahve expense 070 fixed seling and admin expense: $5.90 4.0S $30,000 $9.600 Reauired a for Financial reporting purpo ses what IS the total amaunt of product costs incurrea. b. For financial reporting purposes what S the torai amounAt OF product costs ncurrea to sell 6,000 unitsz C It the selling price what is the contibution maigın per unst sold2 to mahe 6,000 unitS? $23.40 per unit altotal product (manufacruring) cost. bto tal pe1od inonmanueacturing) LOst contriburion margin Per unit
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Required: 1. Complete the income statement 2. Do you advise the company to delete any product? Justify. 3. Prepare the income statement in case of deleting a product.